As India braces for an intense summer, the government has introduced a critical exemption from Bureau of Indian Standards (BIS) certification for key air-conditioner (AC) and refrigerator components. This move aims to prevent shortages and keep cooling appliances affordable for consumers. Let’s break down why this is a game-changer for the industry and how it benefits buyers.

What Is the BIS Exemption and Why Was It Needed?

The Department for Promotion of Industry and Internal Trade (DPIIT) has waived the BIS certification requirement for essential components like:

• Grooved Copper Tubes (used in AC and refrigeration systems)

• AC Compressors (2-tonne capacity and above)

• Imports from China and other countries

This decision follows industry warnings of acute shortages due to a lack of BIS-certified vendors. Domestic manufacturing meets only 40-45% of the demand for AC compressors, creating a potential bottleneck that could have led to supply disruptions and price hikes.

How Does This Benefit AC and Refrigerator Buyers?

1. Prevents Shortages and Ensures Uninterrupted Supply

The exemption allows manufacturers to import components without delays, ensuring that ACs and refrigerators remain readily available despite the soaring demand.

2. Keeps Prices Affordable

Without the exemption, supply constraints could have increased prices due to scarcity. Now, with smooth imports, consumers can expect stable and competitive pricing this summer.

3. Faster Production and Delivery

Manufacturers can now speed up production without waiting for BIS certifications. This ensures that new ACs and refrigerators hit the market on time, preventing long waiting periods for customers.

4. Relief for Manufacturers

Leading brands like LG, Godrej, and Samsung manufacture refrigerator compressors locally, but AC compressors and copper tubes remain largely import-dependent. The BIS waiver gives manufacturers a much-needed breather, helping them meet demand efficiently.

Industry Reactions: A ‘Breather’ for the Cooling Sector

1. Relief for AC Manufacturers

Companies like Amber Enterprises had raised concerns about potential production halts in April due to shortages of certified components. The exemption removes this bottleneck, allowing smooth operations.

2. Addressing Supply Chain Constraints

Industry bodies had long demanded BIS waivers until domestic capacity catches up with demand. With Chinese suppliers facing BIS lapses in 2024, this exemption helps prevent supply chain disruptions.

3. Future Outlook: More Exemptions on the Way?

Industry experts anticipate a further BIS relaxation for smaller AC compressors (below 2 tonnes) and refrigerator compressors soon, ensuring continued stability in the market.

Final Thoughts: A Timely Decision for a Sizzling Summer

With temperatures rising and demand for cooling solutions peaking, the government’s decision is a win-win for both manufacturers and buyers. By removing unnecessary barriers, India’s cooling industry can operate smoothly, ensuring that consumers get affordable and accessible ACs and refrigerators just in time for summer.

Stay tuned for more updates on how this decision will shape the industry in the coming months!